The case study which students are required to resolve using the four step process is set out below on pages 6 and 7. Students are required to apply the relevant legal concepts and principles to analyse and solve the legal issues arising in the case study by explaining and applying their knowledge of the legal principles and rules arising in the Australian legal system.
You will have to listen to the four step process vodcast in the assessment folder on blackboard prior to attempting this assignment. Please note also that the information contained in the course materials (the text book, lecture and E-learning materials) are sufficient when completing your assignment. It is not necessary to research beyond these materials for the purpose of completing this assignment.
• The fact scenario used in this assignment is fictitious.
• Students are to focus on answering the assignment questions with reference to the materials covered in topic 3. Students do not need to (and should not) undertake any additional research. The level of detail and information contained in the course materials is sufficient to answer the assignment.
• Note the four step process requires students to refer to legislation or case law as authority for the rules of law explained in step two. Where appropriate you will need to refer to any applicable legislation or case authorities contained in the material for topic 3. You may also want to review the materials on referencing that were provided for the first assignment.
Damien runs a sports tourism agency in Perth. His business provides clients with unique opportunities to attend high profile American sporting events, and meet professional athletes in a private setting. His business also organises the flight, hotel and restaurant reservations for these tours, so that clients can better enjoy the overall experience.
In March 2018, Damien’s cousin Bryce, phones Damien and asks him to book Bryce a place on the NBA (National Basketball Association) finals tour to take place in June 2018. For the cost of $30,000, participants of this tour are secured tickets to every finals game, and get to attend pre-game functions with past greats of the game such as Michael Jordan and Larry Bird. Damien needs to check the availability of places left on that tour, so he says to Bryce that he will email him back once he has figured out what he can offer him. Later on that day Damien emails Bryce the following:
“Hey Cuz. Good to hear from you today. I have one available spot left on the NBA finals tour running in June 2018. The package includes premium travel and accommodation in each city, so the best I can do pricewise is $25,000. I can’t wait around with this for long, so if you are in, you need to let me know by close of business tomorrow. An email or text will be fine. Cheers Damien.”
The next morning Bryce reads the email and is happy with everything that Damien has stated except the price. A qualified accountant who tries to help out his family whenever he can, Bryce has done Damien’s personal and business tax returns for the past 10 years for a nominal fee, which has saved Damien a lot of money over the years. Two hours before the close of business, Bryce sends Damien an email that reads:
“Thanks for letting me know that Damien. I am in on the tour, but I am only willing to pay $20,000, as times are a bit tough with the accounting business. The rest you can cover for all of that work that I have done for you over the years.”
Upon receiving Bryce’s email, Damien immediately responds by writing, “Fair enough and all good. You have my bank details so deposit the $20,000 by the end of the month. You are going to enjoy this trip Cuz!”
In late May 2018, a week before the tour is to start, Damien goes over the tour documentation, and realises that because he had dealt informally with Bryce concerning his participation on the tour, he had not booked flights and accommodation for him. Because of the popularity of this impending finals series, only the cheapest flights and accommodation are able to be secured for Bryce at this late stage. When Damien notifies Bryce of this, Bryce is upset, and insists that Damien take the cheap flights and accommodation, and give to him Damien’s premium travel and accommodation for the tour. Damien refuses to do this, citing the need to stay with the rest of the touring party at all times. After hearing this, Bryce notifies Damien that he will be seeking legal advice on the matter.
Question (a) 15 marks
Using the four-step process, discuss the elements of intention and consideration required for the formation of a contract. In particular, consider whether these elements have been met in order for there to be an enforceable contract between Bryce and Damien.
Question (b) 15 Marks
Assume that the elements of intention and consideration required for the formation of a contract exist. Using the four-step process, discuss whether the element of agreement required for the formation of an enforceable contract can be established. Can Bryce require Damien to provide him with the premium travel and accommodation for the tour?